Lily Hosts a Well-Known Television Show

question 12

Multiple Choice

Lily hosts a well-known television show, .She also appears in an ad for Rochelle Cosmetics and explains the potential benefits of using these cosmetics.In this scenario, the source of the ad is

• A)the television network that airs the ad.
• B)Rochelle Cosmetics.
• C)Lily.
• D)the audience.
• E)the television show, Real Life.

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Definitions:

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, used to cover fixed costs and generate profit.

Variable Selling Expenses

Costs that fluctuate with the level of sales activity, such as commissions and shipping fees.

Contribution Margin

The amount remaining from sales revenue after variable expenses are subtracted, used to cover fixed costs and generate profit.

Variable Administrative Expenses

Costs that change in proportion to the activity of a business.